Investment Allocation Strategies

Each individual fund at Tulsa Community Foundation (TCF) holds shares of mutual funds and exchange traded funds (ETFs) which allow donors to easily view the specific investments held by the account. TCF can invest contributions on a daily basis and the Bank of Oklahoma’s Portfolio Online system updates account information daily.

In order to maintain maximum efficiency and minimal administrative costs, all accounts with a balance less than $500,000 are required to choose one of these six standard investment strategies. In addition, any accounts with balances below $2,500 are automatically moved to the Money Market strategy until the balance exceeds $2,500.

Currently, TCF offers six standard asset allocation strategies.

Money Market

The Money Market strategy preserves capital and maintains liquidity. The portfolio invests 100% of assets in money market funds or other cash equivalents.

Income

The Income strategy preserves capital and generates income when there is a limited need for growth of assets. The portfolio invests entirely in fixed income securities. The fixed income investments may be diversified among various bond strategies including, but not limited to, short-term bonds, intermediate-term bonds, TIPS, high yield bonds and global bonds.

Conservative

The Conservative strategy provides adequate current income with a higher allocation to fixed income securities than equity securities, which provides some opportunity to experience growth of future income. The portfolio targets a strategic allocation of 70% fixed income or cash and 30% equities. The fixed income investments may be diversified among various bond strategies including, but not limited to, short-term bonds, intermediate-term bonds, TIPS, high yield bonds and global bonds. The equity investments may be diversified among various stock strategies including, but not limited to, domestic large cap, domestic mid cap, domestic small cap, international developed and international emerging markets.

Moderate

The Moderate strategy provides the opportunity for growth through the use of equity securities and provides some current income through the use of fixed income securities. The portfolio targets a strategic allocation of 34% fixed income or cash, 60% equities and 6% alternative investments. The fixed income investments may be diversified among various bond strategies including, but not limited to, short-term bonds, intermediate-term bonds, TIPS, high yield bonds and global bonds. The equity investments may be diversified among various stock strategies including, but not limited to, domestic large cap, domestic mid cap, domestic small cap, international developed and international emerging markets. The alternative investments will consist of investments in mutual fund strategies, which we expect to behave differently than traditional investments (i.e. stocks and bonds).

Aggressive

The Aggressive strategy provides maximum growth with the highest exposure to equity assets as there is not a need for current income. The portfolio has a strategic allocation of 3% fixed income or cash, 85% equities and 12% alternative investments. The fixed income investments may be diversified among various bond strategies including, but not limited to, short-term bonds, intermediate-term bonds, TIPS, high yield bonds and global bonds. The equity investments may be diversified among various stock strategies including, but not limited to, domestic large cap, domestic mid cap, domestic small cap, international developed and international emerging markets. The alternative investments will consist of investments in mutual fund strategies, which we expect to behave differently than traditional investments (i.e. stocks and bonds).

Passive Moderate

The Passive Moderate strategy provides the opportunity for growth through the use of equity securities and provides some current income through the use of fixed income securities. The portfolio targets a strategic allocation of 35% fixed income or cash and 65% equities and invests only in index or passively managed funds or strategies. The fixed income investments will consist of a diversified bond index fund. The equity investments will consist of large cap, mid cap, small cap, international developed and international emerging market index strategies.